In February/March 2008 the price of platinum increased rapidly, approaching $2,300/oz, an all-time high. This bewildering esclation was partly driven by an insatiable global appetite for commodities, but factors of supply (from the mines) and demand (from the industries that use platinum) also played a significant part. Platinum was not the only metal affected, with both palladium and rhodium also increasing sharply during this period. However, a sharp decline followed in August 2008 and had the industry thinking "where next?" This paper will focus on factors that affect platinum group metal (pgm) prices, describe where else they are being used, and discuss how investors are now affecting the market.

Author: Dr. Mark J. Dank